Certificates

Certificates are derivative products issued by financial institutions and give their buyer exposure to the rise or fall of a certain underlying asset, generally a stock market index, but also to a single stock or a basket of stocks. 

Tradable under the same conditions as shares, certificates are issued for a given period and are redeemed at maturity under conditions determined in advance.  They are therefore securities, financial contracts between an issuer and a holder which allow the latter to make a profit or loss depending on the evolution of the associated index. 

The different types of certificates

• Bulls reproduce the variations of the underlying and are designed to play the rise of the underlying. Some certificates have a multiplier effect on the upside, but are therefore more risky because this multiplier effect is also present on the downside. 
• Bears that reproduce the opposite movements of the underlying. They are designed to play the underlying's downside. Similarly, some bears have a downward multiplier effect, but are riskier because this multiplier effect is also present on the upside of the underlying.
• Discounts allow you to buy the index cheaper, or sell the index more expensive, but in the case of a given price stability. Thus, in the absence of volatility, these certificates bet on the stability of the underlying asset.
• Turbos are certificates with an amplifying effect and are intended for the most risk-averse investors. However, amplification means the risk of a significant gain with leverage in the event of a positive trend and the risk of a significant loss in the opposite case.